Broadcom, a US-based designer, developer, manufacturer and global supplier of a wide range of semiconductor and infrastructure software products, has announced plans to invest $1bn (€889.92m) to open a new semiconductor facility in Spain.

Broadcom president Charlie Kawwas stated on Twitter: "Excited to announce our decision to invest in Spain’s semiconductor ecosystem under their semiconductor support program #PERTE_Chip and EU Chips Act principles." He then thanked Spanish Prime Minister Pedro Sánchez for his "support and decisiveness to build a more resilient global semiconductor value chain".

It was reported in May 2022 that Spain was planning to spend more than $13bn on its semiconductor and microchip industry by 2027. Earlier in the year, Intel had announced that it intended to establish joint labs in Barcelona, in collaboration with the Barcelona Supercomputing Centre, as part of a €33bn EU-wide investment aimed at improving the bloc's semiconductor supply chain.

Broadcom was founded in 1961 as HP Associates, before changing its name to Broadcom Limited (and then Broadcom) in 2016 after a series of mergers. The San Jose-headquartered company now has a large global footprint, employing more than 20,000 people.

The European Chips Act, which this deal falls under, is a piece of legislation aimed at encouraging semiconductor manufacturing in the EU. It was announced in February 2022 in response to the global semiconductor shortage that had come to prominence during the Covid-19 lockdowns. The act has three pillars: research, development and innovation; a new state aid exemption covering semiconductor manufacturing; and measures to monitor the supply chain and intervene if necessary.